Saudi Arabia is set to implement new regulations that would raise capital requirements for the kingdom's insurance sector, its central bank governor told Bloomberg TV.
The new requirements would "make the market more attractive to foreign investors," Ahmed Alkholifey, governor of the Saudi Arabian Monetary Authority, said in an interview in Riyadh.
He declined to specify the new capitalization ratio but said it will be "definitely higher than the current one."
If we have bigger companies serving the market in a better way that would be good"
Of Saudi Arabia's 33 insurance companies, 10 made a loss last year, with the bulk of profits being earned by two companies: Bupa Arabia and Tawuniya.
"We have too many small companies," Alkholifey said. "If we have bigger companies serving the market in a better way that would be good. What is going on in the insurance sector is not just the supply side but also the demand side and more awareness."
Officials are trying to expedite the regulations and hope they'll be passed this year, he said.